Flutter FLTR, 
FLTR has raised its full-year forecast after a much better-than-expected second quarter and stated that it has no plans (link) to join competitor Draftkings “at this time”. 
DKNG, which charges a surcharge on customer profits in US states with high taxes.
Flutter’s shares listed on the US stock exchange FLTR rose 11 percent in extended trading.
Flutter, the world’s largest online betting operator, expects to beat its previous forecast (link) for a full-year core profit increase of around 30% thanks to a 17% increase in second-quarter profits, bookmaker-friendly sports results and positive third-quarter performance.
Flutter’s US brand Fanduel and Draftkings are by far the biggest players in the booming US market, with a combined share of around 70 percent, and investors are closely watching Flutter’s reaction to the fees that Draftkings plans to introduce from January 1.
Draftkings announced the first measure of its kind in the U.S. this month, comparing it to similar fees in the hotel or taxi industries to offset the costs of operating in states like New York, which have a 51 percent tax rate on gambling revenue.
Flutter’s CEO said the best response to higher taxes, based on the Dublin-based group’s experience in the more established European market, would be to moderate customer offers or reduce local marketing, as the company plans to do in response to recent tax increases in Illinois.
“We think this type of response is the best option for customers and we have no plans to introduce a winner surcharge at this stage,” said Peter Jackson.
Analysts say that while Draftkings’ plans could boost cash flow, the company also risks losing market share if competitors don’t follow suit. The fee will apply to the four states that currently tax gambling revenue at 20 percent or more.
Flutter said Tuesday it now expects full-year core earnings of $680 million to $800 million at Fanduel, up from $635 million to $785 million in March and $167 million last year, which was the first full year of profitability in the fast-growing market.
In the other markets, which include the Paddy Power and Betfair brands in the UK and Sportsbet in Australia, core profit is now expected to be between $1.69 billion and $1.85 billion, up from a previous forecast of between $1.63 billion and $1.83 billion.
